Cliff dive doesn't appeal to White House

It’s the rallying cry for liberal Democrats in Congress: going off the fiscal cliff is a better option than reluctantly accepting a deal that goes too lightly on revenues or too hard on entitlements.

That message doesn’t seem to be getting through on the other end of Pennsylvania Avenue, where President Barack Obama and other administration officials speak of the economic pitfalls of allowing more than $500 billion in tax increases and spending cuts to take effect next year.

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Carney on "cliff divers"

McConnell knocks W.H. on handling of fiscal cliff

Case in point: a 14-page White House report released Monday morning to kick off the week with grim details of what going off the fiscal cliff means for the economy. The tax hikes alone would translate into a $200 billion hit to consumer spending next year, it says.

The study is part of the administration’s strategy to build pressure on congressional Republicans to agree to significant tax increases as part of a deficit reduction plan.

But it’s also a reminder to Democrats of the economic risks of holding out until next year to get a more favorable fiscal deal.

“The White House has to govern — that means getting a deal done quickly,” said Izzy Klein, a Democratic strategist and principal at the Podesta Group. “The White House is right to be putting this in real and urgent economic terms.”

Unless Congress acts by Dec. 31, more than $500 billion of tax increases and spending cuts are slated to take effect next year. The Bush-era tax rates would expire for everyone, the current estate tax structure would lapse, the alternative minimum tax would hit millions more taxpayers and jobless benefits and Medicare payments to physicians would sunset.

Even before releasing Monday’s report, the administration had been downplaying the idea that going off the cliff would be a win for Democrats. In a press conference earlier this month, Obama said failure to get a deal would provide Americans with a “rude shock” that could trigger another recession.

“It would be a bad thing,” he said. “It’s not necessary.”

Treasury Secretary Timothy Geithner, who will take center stage in fiscal cliff negotiations with Congress, has thrown cold water on the idea peddled by many liberals that the administration could delay the impact of the fiscal cliff a few weeks by not altering tax withholding tables.

“Don’t over-interpret what that authority gives me,” he told Bloomberg News this month.

The retail industry seized on Monday’s study, calling on lawmakers to solve the fiscal cliff riddle now and not wait until next year.

“If brinkmanship overtakes bipartisanship, we will continue to see less capital investment by retailers large and small, stifled job creation, and dampened consumer confidence, which will ultimately lead to lower retail sales and potentially another recession,” said Matthew Shay, CEO of the National Retail Federation.

Readers' Comments (30)

What did you expect the WH to say, "screw you Repubbies, let's wait unti after New Years."?

But that's exactly what the WH will do. The Lame Duck congress should just kick it into neutral and coast to the New Year. Nothing of substence will take place before the next congress. It will be all bluster and hot air until then.

It's no wonder the Republicancontrolled congress

has an Approval Rating of13%....errrr 10%!

"Republicans are the party that says government doesn't work and then they get elected and prove it." - P.J. O'Rourke

The president is purposefully and deliberately misleading the American public and he really needs to "clean up his act" - and, to be a real man of his word for his integrity's sake.

If it is a millionaire's tax that he is after, then that is the target group - millionaires and above. The man is not stupid - he realizes that because there is no tax reform, he really needs to go below a millionaire's salary because the millionaires live off their investment income and therefore, endure a very low tax rate. On the other hand, going to the $250,000 crowd and trickling up to the $1,000,000, he can get a whole lot of money because this group doesn't enjoy the luxury of living off investment income (well perhaps those above $500,000) -

Regardless, it is high time for the man to be straight and honest about this whole fiscal cliff scenario.

The president is purposefully and deliberately misleading the American public and he really needs to "clean up his act" - and, to be a real man of his word for his integrity's sake.

If it is a millionaire's tax that he is after, then that is the target group - millionaires and above. The man is not stupid - he realizes that because there is no tax reform, he really needs to go below a millionaire's salary because the millionaires live off their investment income and therefore, endure a very low tax rate. On the other hand, going to the $250,000 crowd and trickling up to the $1,000,000, he can get a whole lot of money because this group doesn't enjoy the luxury of living off investment income (well perhaps those above $500,000) -

Regardless, it is high time for the man to be straight and honest about this whole fiscal cliff scenario.

Obama's strategy should be clear-cut. Propose a deal to Republicans and advertise its contents to Americans. Make sure it is a fair deal, with those earning $250 K/year or more responsible for thier fair share.

Then, catalog Republican obstructionism to any deal and make them pay YET AGAIN in the 2014 mid-terms.

The GOP has no interest in American prosperity, so Obama should use the distorted GOP value system against them.

There is really no hurry or concern in what the media like to call the "fiscal cliff", nothing will really happen because after the dust clears the congress and white house will then reach some type of agreement on how best to solve the dilemma.....all the hype of the white house and media won't sway the republican house because they know that it will be solved prior to the world coming apart as the media likes to portray it........

Lets all go over the cliff like the liberals want. If they think they will get a better deal they better figure out who is going to increase the debt ceiling. If they can be stupid, then no reason why the Republicans can also be stupid and not vote in favor of raising the debt ceiling. Good luck to everyone. See you at the bottom of the cliff thanks to the liberals.

Obama's tax the rich plan is nothing but a political game. It raises very little revenue and does not make a dent in the Trillion dollar deficits that Obama plans to continue . We need a serious man in the White House.

Obama's tax the rich plan is nothing but a political game. It raises very little revenue and does not make a dent in the Trillion dollar deficits that Obama plans to continue . We need a serious man in the White House.

This is what we should have been talking about before the election. But we let the left pull us off topic and on to distraction issues.

We need higher taxes, AND spending cuts. The Reagan Plan of cutting taxes might have worked, but cutting taxes again was unnecessary. Why do we need such low taxes, yet we expect to pay off the debt? Frankly, higher taxes even in good economic times would be a plus, so we could start getting rid of the debt. Anyone who takes Norquist's Pledge seriously should be removed from office and tried for treason for attempting to bring down the United States of America.

I see both the Democrates and Republicans at fault about the problems in government. But, (yes I know I think more conservatily) I do not get why the Democrates just want to "raise taxes" on the rich but not willing to do anything with the loop holes and stuff. Or, at least from what I have read this is what they want. If this is true then all that will happen is that the rich will just use more loop holes and still not pay what the Democrates say is the "fair share" in taxes.

I do agree that this is all just a political stunt for the Democrates to still have control of the (47 + 52)% of the people. It also shows how the Republicans can act like in congress so that people will dislike them.

There is no fiscal "cliff." If nothing is done, Jan. 1,2,3, 4..... will be just like the days before. These things don't happen all at once. Relax, let the tax breaks for the rich expire, reinstate the middle class tax cuts sometime in January, and deal with all the rest with a new Congress.

This Jan.1st deadline/doomsday meme is a fabrication of the media and political opportunists. The reality of the situation is quite different. Don 't believe all the talking points you hear.

As that well known actor who usually played " bad guys" in many films Strother Martin said in a famous line in the 1968 film Cool Hand Luke: " what we have here is a failure to communicate." We can all point fingers all day long as to which party we believe is holding up the parade in DC. I'm starting to believe that the gridlock in Congress will stop about the same time there is a lasting peace in the middle east. Or the same day they find Jimmy Hoffa. Or the Golden Fleece. Anybody besides me believe it's time for TERM LIMITS on Congress ?